Nearly four in 10 UK consumers say they are cutting back on alcohol because of affordability concerns, according to new survey data.
Some 39% of more than 1,000 consumers surveyed by MMR Research said pressure on their finances was the primary reason for drinking less. This compared with 22% of people who said they were drinking less to support health and fitness goals.
A further 14% said they were cutting back because of a desire for greater mindfulness.
The survey results echo recent polling data from The Harris Poll UK, in which almost half (47%) of Dry January participants identified saving money as one of their main reasons for abstaining from drinking.
However, despite financial concerns being the biggest driver of “downward pressure on demand”, booze brands “shouldn’t rush to slash prices,” insisted Andrew Wardlaw, chief ideas officer at MMR Research.
“There are some much bigger structural changes driving [shifts in demand],” he said. “Across the board, we are seeing people becoming more purposeful and deliberate with their spending – and that intentionality only ramps up when purse-strings are tight.
“So, if an alcohol product doesn’t meet a particular need in their life, consumers are far less likely to see it as worth paying for.”
Instead of cutting prices, brands needed to ensure their products were designed “to fit the way people want to live, feel, and celebrate”, said Wardlaw.
“Alcohol brands need to to reflect the purpose behind people’s drinking, creating sips that shift mood, deliver new experiences or enable self-expression,” he added.
Earlier this month, Worldpanel by Numerator data showed UK households spent 4.1% less on alcohol over the Christmas period compared with last year.
The decline was the sharpest drop in Christmas booze spend since 2021, when the end of Covid restrictions saw revellers flock to pubs and therefore spend less on alcohol to drink at home.
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